For many doctors entering the healthcare workforce in Queensland, QSuper is the default superannuation fund offered by the state’s health department. While QSuper is widely recognised as a reputable super fund, a closer look at its default insurance offerings reveals potential pitfalls, especially for medical professionals. This case study explores the concerns surrounding QSuper’s default insurance and presents a compelling alternative for doctors seeking better coverage and increased chances of successful claims.
QSuper’s Default Insurance
QSuper’s default insurance package includes Income Protection, Total and Permanent Disability (TPD), and Life cover. However, the quality of this insurance has come under scrutiny, particularly in comparison to alternatives available in the market.
According to independent researcher Omnilife*, the QSuper insurance features rating for a 30-year-old female doctor stands at a mere 44 out of 100. This rating raises questions about the adequacy of coverage provided, prompting doctors to consider more robust alternatives.
Seeking Better Quality Cover
To address the shortcomings of QSuper’s default insurance, many doctors are exploring alternative options that offer superior features and benefits. Insurance plans with features ratings ranging from 80 to 90 out of 100 are available at a similar cost (or possible cheaper after tax), promising a higher chance of successful claims and better overall protection.
Underwritten at Application
One significant drawback of QSuper’s default insurance is that it is underwritten at the time of claim, which introduces the risk of pre-existing condition clauses. In contrast, the recommended insurance alternatives are underwritten at the time of application. This distinction eliminates pre-existing condition clauses, increasing the likelihood of a successful claim and providing doctors with greater peace of mind.
Structured Income Protection Outside of Super
Beyond the limitations of default insurance, the recommended alternative allows doctors to structure their income protection outside of the superannuation fund. This not only enhances personal tax deductions, resulting in tax savings, but also offers a more tailored and comprehensive coverage. By obtaining own occupation coverage for Total and Permanent Disability (TPD), doctors can benefit from a clearer and more favourable TPD definition, further improving the chances of a successful claim.
This case study emphasises the critical nature of making well-informed decisions regarding insurance coverage as doctors embark on their professional journeys. The disparities highlighted between QSuper’s default offerings and alternative options underscore the need for a comprehensive assessment of insurance choices.
Here at q4 financial, we specialise in identifying the unique needs of medical professionals. Our dedicated team is readily available to provide personalised consultations and detailed comparisons of insurance alternatives. Taking a proactive step in your insurance coverage is an essential step toward securing a solid foundation for the future.
[Before acting on any General Advice, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) for that product before making any decisions.]
